X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Siemens powering ahead - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Apr 10, 2000

    Siemens powering ahead

    Siemens AG has decided to expand its presence in India by setting up a centre of excellence for handling of high voltage direct current (HVDC) projects globally.

    Siemens Limited which is a subsidiary of Siemens AG had gross sales of Rs 10,834 m and net profits of Rs 351m for the financial year ended 30-9-99. Siemens Ltd. manufactures automation systems, components, medical equipment, motors and driver, power generating equipment and switchgears.

    The company which had posted huge losses of Rs 1,556 m and Rs 560 m for the years ended 30-9-97 and 30-9-98 has turned around with a neat recovery. The company primarily incurred losses on account of its premature expansion into the field of telecommunicaions.

    As a result of hiving off the telecom sector and cost reduction measures such as retrenchment, sale of surplus land to reduce interest burden, the company has posted profits.

    The present move is a fallout of Siemens bagging a 8,200 m HVDC contract from Power Grid. The contract is essentially to transfer 2000 MW of power over 1,400 kms from Orissa to Karnataka. It is the second largest contract of its nature in the world. Only Siemens which has the cutting edge technology in this area of HVDC is expected to further optimise costs and performance by setting up such centres.

    With the liberalisation of the economy and privatisation of the power sector, more and more independent power producers are entering the power sector. The crying need of the hour for overall economic development is improvement of the infrastructure of which power is the cornerstone. With the country slated for a 12% industrial growth, supply of power would be of utmost essence as there is huge gap between demand and supply of power.

    The present project which would involve transmission and distribution of power from surplus Orissa to deficient Karnataka (which is the IT Capital of India) is just one of the several such projects in India.

    Siemens which has acquired the cutting edge in power technology by dint of its well equipped research and development unit as well as technical knowhow obtained from its parent company is bound to benefit tremendously in terms of sales and profits by virtue of such contracts. The only pitfalls the company must be beware of are any incidence of cost escalation and delay in payments that are typical of government agencies. Of course the company can insist on guarantees, counter guarantees and creation of escrow accounts for the same.

     

     

    Equitymaster requests your view! Post a comment on "Siemens powering ahead". Click here!

      
     

    More Views on News

    ABB: Large Orders Remain Muted (Quarterly Results Update - Detailed)

    Aug 2, 2017

    Decisions on government initiatives and private investments were stalled in anticipation of upcoming tax restructure.

    BHEL: Margins Dip into the Negative (Quarterly Results Update - Detailed)

    Aug 14, 2017

    The company also saw order inflows of Rs 18 billion during the quarter, which was a massive 41% YoY lower than the previous year's quarter.

    Cummins Ltd: Domestic Revenues the Saving Grace (Quarterly Results Update - Detailed)

    Aug 14, 2017

    The domestic economy continues to grow largely in areas which are positively impacted through continuing government investments in infrastructure.

    L&T: Amidst a Challenging Business Environment (Quarterly Results Update - Detailed)

    Aug 1, 2017

    Bank credit to industry remained muted and investment momentum was driven mostly by public sector spending.

    L&T: Private Sector Capex Remains in a Tizzy (Quarterly Results Update - Detailed)

    Jul 24, 2017

    Vast majority of private players remain more concerned with debt payback rather than starting new projects.

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Profitable Investment in the History of the World(Vivek Kaul's Diary)

    Aug 8, 2017

    'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    ABB INDIA LTD. SHARE PRICE


    Aug 21, 2017 02:26 PM

    TRACK ABB INDIA LTD.

    • Track your investment in ABB INDIA LTD. with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks

    MORE ON ABB INDIA LTD.

    ABB INDIA LTD. 5-YR ANALYSIS

    Detailed Financial Information With Charts

    COMPARE ABB INDIA LTD. WITH

    MARKET STATS